Which of the Following Should Not Influence a Firm's Dividend

question 33

Multiple Choice

Which of the following should not influence a firm's dividend policy decision?

• A) A strong preference by most shareholders for current cash income versus capital gains.
• B) Constraints imposed by the firm's bond indenture.
• C) The fact that much of the firm's equipment has been leased rather than bought and owned.
• D) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.
• E) The firm's ability to accelerate or delay investment projects.

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Definitions:

Bats

The only mammals capable of sustained flight, known for their echolocation ability, which they use to navigate and find food in the dark.

Causes of Extinction

Factors such as habitat destruction, overexploitation, climate change, pollution, and the introduction of invasive species that lead to the disappearance of species from the Earth.

Biodiversity

The variety and variability of life on Earth, encompassing the diversity of species, their genes, and the ecosystems they inhabit.

Ecotourism

A form of sustainable travel to natural areas, focusing on conserving the environment and improving the well-being of the local people.